The North East has made its case to play a leading role in hydrogen, calling for the government’s Industrial Strategy to build on its existing strengths.
The North East Chamber of Commerce has released a report, exploring the potential of hydrogen to drive economic growth and decarbonisation across the region, while also making a series of recommendations to help it realise this potential. Pointing out the growing presence of hydrogen in the North East, the report highlighted how Teesside already produces half the UK’s total output of hydrogen and is the location of UK’s first hydrogen transport hub, while it is also home to key companies including Lhyfe and GeoPura.
McKinsey has tipped a £1 trillion global market opportunity for British companies through the period to 2030 for low carbon products, while capturing a 10% share of the hydrogen technology market could bring £46 billion per annum to the UK by 2050 and 410,000 jobs across the sector, according to the Hydrogen Innovation Initiative. Therefore, the North East has a substantial opportunity to benefit from these jobs and continue growing the hydrogen sector.
Recommendations include an engagement focus with primary schools and on creating diversity within the engineering sector, ensuring the talent pipeline for the future of hydrogen can be built; for businesses to use digital technology as well as open days and work experience to demonstrate the opportunities in hydrogen in the region; and for government to price match green hydrogen with natural gas through a subsidy, incentivising a shift from natural gas across key sectors.
Looking ahead, there will be a need to examine the North East’s current grid capacity and its future needs across different sectors, including clean energy, given how capacity on the national grid is essential to allowing electrolysers for green hydrogen, while steps need to be taken to promote opportunities in energy to attract investors to the North East, and collaboration is required between government, local authorities, industry and utility companies to find innovative waste water solutions for hydrogen and carbon capture projects.
It also called for there to be a long-term plan on clean energy from government, including the role for Great British Energy, providing certainty for businesses and to encourage investment; for support for businesses wanting to invest in clean energy, including hydrogen; and for the government’s Industrial Strategy to learn from hydrogen trials in other countries, as well as within the UK.
